Affordability - shared ownership

AliceBanned

Hi all

I was recently turned down for a shared ownership flat through a Housing Assoc. They did an affordability calculation and said due to government regulations I don't meet the requirements, even though I meet the salary requirements.

I understand why, I have £2.5k credit card debt and so they therefore require a £22k deposit, whereas without the credit cards they said I would need £10k deposit.

I could look at other areas but I really need to move as my travel expenditure is £500 per month at the moment. I'm in a housing assoc flat and in some ways it is a bind, as I am in the wrong location for work. I tried to buy the HA flat i'm in but this fell through because of the concrete construction. It would be worth me staying here if I could have bought it, as I would at least build up equity, but for renting i am in the wrong place as living expenses are high (although property prices fairly low for the south east).

I think I'm suffering from depression also, but no wonder as every door I try to open just closes in my face. I think there are other options, swapping etc but this problem has worn me down for so long, with me trying and and trying with no success, that I feel I can't try any more.

I am now looking at moving to east london and renting, if I can get an exchange as this would be cheaper than commuting and living in a semi-rural area, also costing me a lot in petrol. I didn't like living in London but maybe it's a necessity as I work there and can't easily get reasonably paid work elsewhere. I earn £27k but for a long time earned a lot less. In these days it seems only enough to get by anyway. I'm just getting more and more depressed as I seem to be working for nothing and can't see a way out.

ViolaLass

How much do you have saved for a deposit?

AliceBanned

I have £4200 so far. Trying to save £300 per month but it is slow and difficult.

AliceBanned

I think maybe a large part of the problem is how demoralised I've become. I barely feel like continuing to work. I just feel lie things will never work out. I know that's very negative but it has been my experience so far. When you've tried all your life and achieved nothing it isn't a great place to be.

opinions4u

Get debt free. You'll be there by Spring, if not earlier.

Then blitz saving for the deposit.

Then you're efforts will be rewarded.

With continued focus you can put yourself in a great position!

AliceBanned

Thanks. I guess I don't have moral support so I am feeling really negative.

In reality I could let out my bedroom (it is largish one bed flat) as the landlord said I can do this. However in my current state of mind it feels like a big deal and I'm scared I might hate it and not be able to cope with a lodger.

I've just had two weeks off work, only going away for a few days and I think it's actually made me feel worse. Strange.

opinions4u

AliceBanned wrote: »

Thanks. I guess I don't have moral support so I am feeling really negative.

In reality I could let out my bedroom (it is largish one bed flat) as the landlord said I can do this. However in my current state of mind it feels like a big deal and I'm scared I might hate it and not be able to cope with a lodger.

I've just had two weeks off work, only going away for a few days and I think it's actually made me feel worse. Strange.

You're signature line tells a story of ongoing success.

ViolaLass

You've got enough saved to be debt-free today - why keep paying interest when you've got the money to pay it off? It can only hold you back, particularly if not having debts will mean you require a smaller deposit.

AliceBanned

Thanks to you both. I just need to pick myself up a bit.

My dad gave me some money as a gifted deposit to buy this place, but that fell through. so I don't want to use any of that money to pay off my debts. I seem to go out and spend on my credit card and struggle to pay them off although I have reduced them quite a bit. it goes feels like I'll never get there but I know I need to change my state of mind. After so long it's just got to me I guess.Thanks for your help and supportive words.

AliceBanned

Just wanted to let you know that a lodger moved in last week, paying £300 per month. This is the first time I've had a lodger. She has a six month contract and is a full time student and also works. We hardly see eachother and all it means is I've lost my bedroom and moved into my living room - both rooms are quite large and it is a one bed flat. Deposit saving continues...:beer: